Common-law wife question for working student in New

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Thanks for the reply.  I have US medical but have not transferred my
driver's license.  I live here with my common-law wife, but she did not
work in the US in 2003, so it sounds like the tax advantages would be
slight.
How much would it be for you to do the 2003 return, and double-check my
2001 return (very similar situation)?
Thanks,
=====================================================
Go and get your New York Driver;s licence.  Unless I am very mistaken, your job means that you need a New York State Driver;s licence.  You don't as a student, but do when you have a job is my understanding.
How did your common-law wife get to the US or is she a US citizen.  If she is your Canadian Common-law wife, and there as a B-2 Visitor AND you have been together for more than a year, I would suggest that she should be treated as a wife.  
Although I realize that this is against the stated policy, I have likley done over a 100 US returns as joint with common-law wives and there has been no problem.  Remember that you can file a joint return with your wife if she is in Canada.  She does not have to even be in the United States.
If you were living together in Canada or the following states (in alphabetical order):
  a.. Alabama 
  b.. Colorado 
  c.. Idaho 
  d.. Iowa 
  e.. Kansas 
  f.. Montana 
  g.. Ohio 
  h.. Oklahoma 
  i.. Pennsylvania 
  j.. Rhode Island 
  k.. South Carolina 
  l.. Texas 
  m.. And the Capital of the United States, the District of Columbia recognizes Common-Law marriages. 
Your common-law marriage would be recognized without question in these states and indeed in Oklahoma, you could be forced to get a divorce.  
What is a common-law marriage?
  "Common law marriage -- One not solemnized in the ordinary way (i.e. non-ceremonial) but created by an agreement to marry, followed by cohabitation. A consummated agreement to marry, between persons legally capable of making marriage contract, per verba de praesenti, followed by cohabitation. Such marriage requires a positive mutual agreement, permanent and exclusive of all others, to enter into a marriage relationship, cohabitation sufficient to warrant a fulfillment of necessary relationship of man and wife, and an assumption of marital duties and obligations." Marshall v. State, Okl.Cr., 537 P.2d 423, 429. 
  Black's Law Dictionary 
If your wife is American, you can bring her back to Canada as a common-law spouse without question.
see   http://www.cic.gc.ca/english/pdf/kits/forms/IMM5490E.PDF
This is your spouse or conjugal partner questionnaire -= FORM IMM-5490
So, we should file a joint tax return for you as a resident of the US.
We would report the Canadian income on top of the US income and the Canadian return would not include the US income.
If it was challenged, the worst that would happen is that you would pay the tax you would have paid anyway.
Fee For doing 2003 and checking 2001 - $1,000 Cdn. If we thehn changed the 2001, likley another $400 Cdn.
estimated tax savings by filing as a US resident, about $2,000 US, more if a jont return.
Hope this helps
david ingram
===================================
The original questions (with some disguise) follows 
                                                                                                                                      
 
I'm looking for someone to assist with my taxes.
I'm a Canadian.  I worked in Canada from January to August of 2003, and in
the US, on a J1 visa, from October through December.
I did have social security and medicare witheld from my US wages.
I earned about $28k in Canada, and about $24k in the US.
I know I can file as a non-resident here in the US and get the SS and
medicare back.  But I'll be here for a few years, so I could declare myself
a resident and pay the US taxes on the US earnings, and the Canadian taxes
on the Canadian earnings.
Can you tell me which would be more tax-advantageous?
Thanks,
=========================================
david ingram replies:
If you are a J1 you are usually considered to be a resident of Canada for
the purposes of world tax.
That means that you file a 1040NR in the US and then report the money again
on your Canadian return.  In other words, Canada taxes you on your world
income.  This method also allows you to continue with your provincial
health coverage for up to five years.
However,  if you have US medical and you have a New York Driver's licence
(which you need if working there but not if a full time student)  then I
would file you as a world resident of the US and what should be a sslightly
lower tax rateif you are single and a greatly reduced tax rate if you  are
married and file a joint return in the US.
I would be glad to look after these for you.
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